- Why Buy Virginia Bonds?
- What are the ratings on Virginia's General Obligation (G.O.) bonds?
- How can I purchase Virginia bonds?
- What is the dollar amount of the bonds?
- What is the typical maturity of the bonds?
- What is the interest rate(s) on the bonds?
- What other financing entities are staffed by Treasury?
Why Buy Virginia Bonds?
Bonds are used in the Commonwealth of Virginia to finance the costs of long term capital improvements throughout the state. The Commonwealth does not use bonds to close budget gaps or fix cash flow problems. Virginia bonds are primarily used for new construction and improvements at our institutions of higher education, transportation and port facilities, schools and state park and correctional facilities. Investing in Virginia bonds supports these endeavors, and interest paid to bond holders is exempt from Virginia income taxation, and in most cases, federal income taxation.
The Commonwealth's general obligation bonds are currently rated AAA/Aaa/AAA by Fitch, Moody's and Standard and Poor's rating agencies respectively. Rating agencies focus on several key factors in assessing a state's credit quality: control of debt burden, economic vitality/diversity, fiscal performance, and administrative capabilities. Most of the Commonwealth’s appropriation supported bond programs, which require an annual appropriation for debt service, are rated one notch below the general obligation bonds at AA+/Aa1/AA+. This would include bonds issued by certain state authorities, such as the Virginia Public Building Authority and the Virginia College Building Authority. Virginia Public School Authority Bonds backed by a sum sufficient appropriation are also rated AA+/Aa1/AA+.
What are the ratings on Virginia's General Obligation (G.O.) bonds?
Virginia's GO Bonds are among a handful of States rated in the highest rating category by all three bond rating agencies.
Fitch Ratings AAA
Moody's Investor's Service Aaa
Standard and Poor's Ratings Services AAA
How can I purchase Virginia bonds?
You can purchase Virginia bonds through your brokerage firm.
What is the dollar amount of the bonds?
The bonds are usually in increments of $5,000.
What is the typical maturity of the bonds?
Bonds can vary in maturity date from one to 20 or 30 years.
What is the interest rate(s) on the bonds?
Interest rates are determined on the date of sale and can vary depending on the term of the bond, market conditions, investor demand, and security structure.
What other financing entities are staffed by Treasury?
The Treasury is staff to various boards and authorities, which include Treasury Board, Virginia College Building Authority, Virginia Public Building Authority and Virginia Public School Authority. Treasury also is staff to the Debt Capacity Advisory Committee.